Egypt's tax hike on wealthy to last three years

CAIRO (REUTERS) - A new 5 per cent surtax on the incomes of wealthy Egyptians will last for three years, the finance minister said on Saturday, less than three weeks before the country elects a new president.

Mr Hany Dimian said the tax, approved by the cabinet last week, would apply to those earning more than one million Egyptian pounds (S$177,250) annually in 2014, 2015 and 2016. He said the first payment would be due in January 2015.

Those subject to the tax would be given the choice of whether their funds should go towards public projects in education, health, agriculture, housing or infrastructure.

The temporary tax had been under discussion for several months, but its approval comes shortly before a May 26-27 presidential election which is widely expected to be won by former army chief Abdel Fattah al-Sisi.